P is the price measured in a common currency used in both


Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras in Thailand and Japan is described by the following functions:

Qd(T)= 60 - P

Qs(T)= - 5 +1/4 P

Qd(J)= 80 - P

Qs(J)= - 10 + 1/2 P

P is the price measured in a common currency used in both countries, such as the Thai Baht.

Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and imports cameras and in what quantities?

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Business Economics: P is the price measured in a common currency used in both
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